Essential Power…Infinite Possibilities

March 18, 2010

Formation Metals Announces Non-Brokered Private Placement

THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Vancouver, B.C., March 18, 2010, Formation Metals Inc. (FCO-TSX) (the “Company”) is pleased to announce a non-brokered private placement of up to 5,750,000 Units of the Company to qualified investors at a price of $1.50 per Unit (the “Offering”), for gross proceeds of up to $8,625,000. The Offering, which is subject to regulatory approval, is anticipated to close on or about April 30, 2010 or such other date as may be determined by the Company (the “Closing Date”). Each Unit is comprised of one common share and one-half of one transferable common share purchase warrant, each whole common share purchase warrant entitling the holder to purchase one common share of the Company at a price of $2.00 per share for a period of twenty four months from the Closing Date, subject to the Company’s right to accelerate the expiry date as described below (the “Acceleration Right”). The securities issued pursuant to the Offering are subject to a 4 month hold period in Canada. Non-arm’s length parties may participate in up to 10% of the Offering.

If, at any time following the Closing Date, the volume weighted average trading price of the Company’s common shares on the Toronto Stock Exchange for any 10 consecutive trading days is $2.55 per share or more, the Company may reduce the period within which the warrants may be exercised by giving notice to the holders of the warrants, by way of news release, that the expiry date for exercise of the warrants has been accelerated, in which case the warrants will expire on the twenty first day following the date of such notice.

Proceeds from the private placement are intended to be used for general corporate purposes and for working capital of the Company. The Company is proposing to pay a fee in cash to finders who introduce participants in the private placement to the Company.

The common shares and warrants that will be issued in connection with the private placement will not be registered under the United States Securities Act of 1933, as amended, or any State securities laws and may not be sold or offered for sale in the United States or to U.S. Persons or otherwise distributed in the United States, except in reliance on available registration exemptions.

Formation Metals Inc.
“Mari-Ann Green”
Mari-Ann Green,
C.E.O.

For further information please contact:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications
Formation Metals Inc., 1730 - 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: 604-682-6229 - Email: inform@formationmetals.com - Web: formationmetals.com

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This press release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “planned”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may” ,”could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, the nature of our customers and rates of default, and competition as well as those factors discussed in the Company’s documents filed on SEDAR (www.sedar.com).

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on the Company is available at www.sedar.com.

The statements contained in this news release in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.’s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.

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March 16th, 2010, Formation Metals Withdraws Current Prospectus
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April 30th, 2010, Formation Metals Concludes Stage I Construction on Idaho Cobalt Mine